Category Archives: central banks

Events of the last several months overseas as well as here in the U.S., are having an adverse effect on markets….

But the focus was on Yellen, who was due to speak before the Economic Club of New York at 1530 GMT. Weaker-than-expected U.S. consumer spending data on Monday prompted analysts to suggest the U.S. central bank would be cautious about raising rates this year. Fed policymakers earlier this month projected two rises in 2016, with some saying the first could come next month.

One long-standing axiom of markets, at least during the QE years, is being tested in real time, and it’s making Bank of Japan policymakers (and at this point, politicians too) nervous: the Japanese Yen shall fall when equity markets rally. After weeks of central bank action surprising on the dovish side, market participants have been left scratching their heads as this rule has been seemingly violated through and through.

Will we see an increase in interest rates, when will the banks start charging their customers for deposits….

The common force yesterday was the revising of forecasts to the reality of slower growth, both domestically and globally. This was seen both by the US Federal Reserve and the UK Chancellor has he presented his budget.

It is unfortunate when a country’s leaders want to provide a lot free stuff in order to get elected – but then, the people who elect them get what they deserve…

Brazilian real to come under renewed pressure

In Brazil, inflation is expected to have risen 10.44%y/y in February, slightly less than January 10.71% increase. It seems that inflation expectations have been successfully re-anchored for a few months now.

– The next two weeks bring markets three of the largest and most pivotal Central Banks with rate decisions, meetings and press conferences that can invoke volatility henceforth. We preview each of those meetings below.